Will it fix my problem if I upgrade the firmware of the router to a third party (if yes, which one to choose)? It is currently running on original Linksys firmware v. 2.09.1. For the adapter Iâ€™m using version 2.0 of the wireless monitor. The signal strength is only around 50%.

As this part of the IT world is pretty new to me, a not too technical answer would be appreciated.

Toxic:
Yes, I can ping the router (192.168.1.1) and right now also the internet. In fact, right now Iâ€™m connected through the wireless connection even though it is quite slow (Iâ€™m listening to the radio and it keeps dropping out). I assume the slow connection can be fixed by turning up the signal strength.

To show my insight in this topic I have to ask what you mean by â€œwhat is starting ip address for Network Address Server Settings (DHCP)â€. Is it in the modem setup or in windows I find it?

Esquire:
Yes, I do use PPPoE to connect to the network (requiered by ISP).

Yes, I use an ADSL modem. When I say the IP address of the modem I mean the IP address I use to access the moden. On the internet the IP is obtained automatically.

Henrik, the modem shouldn't have an IP on your home network - not one that you can see, least one in the form of 192.168.n.n. The 192.168.1.1 is the default IP address to access the WRT54GS setup.

I presume you have connected your modem to the router's WAN/Internet port (not one of the 4 LAN ports) and that you have configured your router's built-in PPPoE dialler to connect to your ISP? You can see if your router is connected to the ISP properly by going to Status|Router in 192.168.1.1, after clicking the [Connect] button there.